India's economic recovery gains momentum in recent months: PHDCCI

India's economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments, industry chamber PHDCCI said on Sunday.

The PHDCCI Economy GPS Index for October 2021 increased to 131 as compared with 113.1 in the previous month. During the April-October 2021 period, it stood at 114.8 as compared with 78.7 in the previous financial year, the chamber stated.

However, its President Pradeep Multani said that at this juncture, there is a need to address the high commodity prices and shortages of raw materials to support the consumption and private investments in the country.

The drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on the expansion of capital investments, said Multani.

The PHD Chamber of Commerce and Industry (PHDCCI) Economy GPS Index is a composite index of three lead economic and business indicators with a base year at 2018-19=100, which measures the broad economic and business activity.

The PHDCCI Economy GPS Index, based on the monthly values of three high-frequency indicators viz., GST collection (Rs crore), passenger vehicle sales (units) and Sensex (daily average), helps to find the direction of the economy.

GST collections indicate the momentum of business activity, passenger vehicle sales is a broad indicator of demand activity in the economy and the movement of the Sensex indicates the mood of both domestic and foreign investors, the chamber said.